Future Income Planning for Retirement
When it comes to future income planning for retirement, there are only three buckets your money can be in, which I talk about at length in my book. There is the taxable bucket, the tax-free bucket, and the tax-deferred bucket. It’s very important to be familiar with which buckets your money is invested in and the taxable implications each bucket has on your income.
Invest in Inheritance Planning
We’re different from many inheritance and income planners because we take future tax rates into account and make them part of the income planning process. I have given dozens of seminars, and the amount of people who have planned their retirement who have not taken income taxes into account is staggering. Our income planning services from Malibu, CA, can help you diversify your income so that you are prepared for any future change in tax rates.
It’s not only taxation that causes issues with your retirement income; there are several pitfalls you need to beware of. Planning for a Long Term Care Health event is another one. This can be another big problem if you haven’t planned for it. One spouse getting ill and spending down the lion’s share of the assets only to die and leave the surviving spouses saddled with bills and not enough money to pay them is a common issue. There are ways around this without paying for traditional and costly long-term care insurance. We’ve also seen people in Southern, Northern, and Central California take too much risk and then lose too much of their assets in retirement. This forces people to take less income and thus stops them from doing the things they once loved to do because they can no longer afford them.
Income planning is a process that helps you develop your expectations of what your income will look like in retirement. This process entails examining all your sources of income like social security, pensions, investment income from properties, businesses, stocks & bonds, as well as your savings and potential inheritance or any other income you might receive. Then we’ll need to examine how taxation could affect your income, this is largely overlooked by most who plan for retirement. There are only three buckets your money can be in. I talk about this at length in my book. There is the taxable bucket, the tax free bucket, and the tax deferred bucket. It’s very important to be familiar with which buckets your money is invested and the taxable implications each bucket has on your income.
